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Legal sportsbetting in Ontario is good news for punters in the populous province. And with sportsbooks like Draftkings set to enter the market, fantasy sports bettors should expect exciting news in the coming weeks. Draftkings and Fanduel are the most popular fantasy sportsbooks in North America and Canada.
Currently, Fanduel is among the leading sports betting for Ontarians. Draftkings is yet to officially launch its activities in the province even though the bookmaker has announced it could be available to Ontarians sooner than later. However, there are challenges with daily fantasy sports in Canada because of legal challenges and operator fees.
Update on Daily Fantasy Sports Canada
The dawn of legal sports betting in Canada’s largest province may not, after all, have fulfilled everyone’s expectations. Fanduel withdrew DFS from Ontario two days before 4th April citing heavy fees and taxation on revenue on fantasy sports operators. According to the Alcohol and Gaming Commission of Ontario (AGCO), a regulation fee of $100,000 and an additional 25% tax is the requirement that DFS providers should pay to be allowed to operate in Ontario.
Comparing these fees to the US market where fantasy sports operators are charged nearly half of that. Thus, providing Ontarians with the same service is not economically sustainable. As a result, Fanduel and Draftkings have stopped fantasy gaming services to the Ontarians in the foreseeable future.
The good news is that Ontarians can still access daily fantasy sports Canada on Fanduel outside the province, including in the US and place bets. Fantasy Sports and Gaming Association have expressed displeasure with the high fees, which they say, are impossible for nearly all the operators. However, an assurance that the association will resolve the matter with the Ontario government means Ontarians can remain hopeful that the situation with daily fantasy sorts Canada will be settled soon.